0001086222 2009-01-01 2009-12-31 0001086222 2009-06-30 0001086222 2008-12-31 0001086222 2010-04-01 2010-06-30 0001086222 2009-04-01 2009-06-30 0001086222 2010-08-04 0001086222 2010-06-30 0001086222 2009-12-31 0001086222 2010-01-01 2010-06-30 0001086222 2009-01-01 2009-06-30 iso4217:USD xbrli:shares xbrli:shares iso4217:USD 3152000 3679000 136193000 <div> 12. 1% Convertible Senior Notes As of June 30, 2010, the carrying amount and fair value of the Company's 1% convertible senior notes were $63.6 million and $185.1 million, respectively. The initial, and current, conversion price of the 1% convertible senior notes is $15.45 per share (equivalent to 64.7249 shares of common stock per $1,000 principal amount of 1% convertible senior notes). The conversion price is subject to adjustment in certain events. During the three months ended June 30, 2010, the Company issued 8.8 million shares of common stock in connection with the conversion of $136.2 million in aggregate principal amount of its 1% convertible senior notes. The Company may redeem the 1% convertible senior notes on or after December 15, 2010 at the Company's option at 100% of the principal amount together with accrued and unpaid interest. Conversely, holders of the 1% convertible senior notes may require the Company to repurchase all or a portion of such notes at 100% of the principal amount plus accrued and unpaid interest on certain specified dates beginning on December 15, 2010. As of June 30, 2010 and December 31, 2009, the 1% convertible senior notes were classified as a short-term liability to reflect the ability of the bondholders to redeem these notes in less than 12 months. In the event of a change of control of the Company, the holders may require Akamai to repurchase all or a portion of such 1% convertible senior notes at a repurchase price of 100% of the principal amount plus accrued and unpaid interest. Interest on the 1% convertible senior notes began to accrue as of the issue date and is payable semiannually on June 15 and December 15 of each year. The 1% convertible senior notes are senior unsecured obligations and are the same rank as all existing and future senior unsecured indebtedness of Akamai. Th e 1% convertible senior notes rank senior to all of the Company's subordinated indebtedness. Deferred financing costs of $5.9 million, including the initial purchaser's discount and other offering expenses, for the 1% convertible senior notes are being amortized over the first seven years of the term of these notes to reflect the put and call rights discussed above. Amortization of deferred financing costs of the 1% convertible senior notes was approximately $0.2 million and $0.4 million for each of the three and six-month periods ended June 30, 2010 and 2009, respectively. Using the effective interest method, the Company records the amortization of deferred financing costs as interest expense in the consolidated statement of operations. </div> -387000 -245000 -675000 -93000 182404000 227888000 -213000 -125000 false --12-31 Q2 2010 2010-06-30 10-Q 0001086222 181605446 Large Accelerated Filer AKAMAI TECHNOLOGIES INC

<div> 6. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands):   <table border="0" cellspacing="0" cellpadding="0" width="92%"> <tr><td width="76%"> </td> <td valign="bottom" width="6%"> </td> <td> </td> <td> </td> <td valign="bottom" width="6%"> </td> <td> </td> <td> </td></tr> <tr><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">June 30, 2010</td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">December 31, 2009</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Payroll and other related benefits</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">30,317</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">38,841</td></tr> <tr><td valign="top"> Bandwidth and co-location</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">18,117</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">18,591</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Property, use and other taxes</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">14,401</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">6,815</td></tr> <tr><td valign="top"> Professional service fees</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">4,216</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,846</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Contingent consideration</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,807</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td></tr> <tr><td valign="top"> Other</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,307</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,473</td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Total</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">70,165</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">68,566</td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td></tr></table> </div>

23997000

33529000

154269000

164574000

68566000

70165000

-10682000

-13118000

4615774000

4815780000

10579000

10900000

420000

394000

8477000

4238000

8260000

4152000

2087510000

2202998000

761173000

778167000

<div> 3. Business Acquisition On June 10, 2010, the Company acquired substantially all of the assets and liabilities of Velocitude LLC ("Velocitude"), in exchange for payment of approximately $12.0 million in cash. The purchase of the assets of Velocitude was intended to further Akamai's strategic position in the mobile market. The acquisition of the assets of Velocitude was accounted for using the acquisition method of accounting. The Company allocated $11.6 million of the cost of the acquisition to goodwill and $2.8 million to other intangible assets. In addition, the Company has recorded a liability of $2.4 million for contingent consideration related to the expected achievement of certain post-closing milestones. Such amount is expected to be paid over the next 18 months. The results of operations of this acquisition have been included in the consolidated financial statements of the Co mpany since June 10, 2010, the date of acquisition, and are not material to the Company's financial position or results of operation for the three or six month periods ended June 30, 2010. </div>

156074000

321083000

181305000

120506000

165009000

-60799000

<div> 15. Commitments, Contingencies and Guarantees Operating Lease Commitments The Company leases its facilities under non-cancelable operating leases. These operating leases expire at various dates through December 2019 and generally require the payment of real estate taxes, insurance, maintenance and operating costs. The expected minimum aggregate future obligations under non-cancelable leases as of June 30, 2010 were as follows (in thousands):   <table border="0" cellspacing="0" cellpadding="0" width="84%"> <tr><td width="87%"> </td> <td valign="bottom" width="5%"> </td> <td> </td> <td> </td></tr> <tr><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">Operating Leases</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Remaining 2010</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">11,522</td></tr> <tr><td valign="top"> 2011</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">22,831</td></tr> <tr bgcolor="#cceeff"><td valign="top"> 2012</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">19,543</td></tr> <tr><td valign="top"> 2013</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">18,315</td></tr> <tr bgcolor="#cceeff"><td valign="top"> 2014</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">17,534</td></tr> <tr><td valign="top"> Thereafter</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">69,957</td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Total</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">159,702</td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td></tr></table> Purchase Commitments The Company has long-term commitments for bandwidth usage and co-location services with various network and Internet service providers. For the remainder of 2010 and for the years ending December 31, 2011, 2012 and 2013, the minimum commitments pursuant to these contracts in effect as of June 30, 2010, are $42.9 million, $21.4 million, $3.0 million and $0.3 million, respectively. As of June 30, 2010, the Company had entered into purchase orders with various vendors for aggregate purchase commitments of $29.4 million, which are expected to be paid over the next twelve months. Litigation Between July 2, 2001 and November 7, 2001, purported class action lawsuits seeking monetary damages were filed in the U.S. District Court for the Southern District of New York against the Company as well as against the underwriters of its October 28, 1999 initial public offering of common stock. The complaints were filed allegedly on behalf of persons who purchased the Company's common stock during different time periods, all beginning on October 28, 1999 and ending on various dates. The complaints are similar and allege violations of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, primarily based on the allegation that the underwriters received undisclosed compensation in connection with the Company's initial public offering. On April 19, 2002, a single consolidated amen ded complaint was filed, reiterating in one pleading the allegations contained in the previously filed separate actions. The consolidated amended complaint defines the alleged class period as October 28, 1999 through December 6, 2000. A Special Litigation Committee of the Company's Board of Directors authorized management to negotiate a settlement of the pending claims substantially consistent with a Memorandum of Understanding that was negotiated among class plaintiffs, all issuer defendants and their insurers. The parties negotiated a settlement that was subject to approval by the District Court. On February 15, 2005, the Court issued an Opinion and Order preliminarily approving the settlement, provided that the defendants and plaintiffs agree to a modification narrowing the scope of the bar order set forth in the original settlement agreement. On June 25, 2007, the District Court signed an order terminating the settlement. On August 25, 2009, the plaintiffs fil ed a motion for final approval of a new proposed settlement (among plaintiffs, the underwriter defendants, the issuer defendants and the insurers for the issuer defendants), plan of distribution of the settlement fund, and certification of the settlement classes. On October 5, 2009, the District Court issued an opinion and order granting plaintiffs' motion for final approval of the settlement, approval of the plan of distribution of the settlement fund, and certification of the settlement classes. An order and final judgment was entered on November 4, 2009. Notices of appeal of the District Court's October 5, 2009 opinion and order have been filed in the United States Court of Appeals for the Second Circuit. If the District Court's order is upheld on appeal, the Company would have no material liability in connection with this litigation, and the litigation would be resolved. The Company has recorded no liability for this matter as of June 30, 2010. In addition, on or about October 3, 2007, a purported Akamai shareholder filed a complaint in the U.S. District Court for the Western District of Washington, against the underwriters involved in its 1999 initial public offering of common stock, alleging violations of Section 16(b) of the Exchange Act of 1934, as amended. The complaint alleges that the combined number of shares of the Company's common stock beneficially owned by the lead underwriters and certain unnamed officers, directors and principal shareholders exceeded ten percent of its outstanding common stock from the date of the Company's initial public offering on October 29, 1999, through at least October 28, 2000. The complaint further alleges that those entities and individuals were thus subject to the reporting requirements of Section 16(a) and the short-swing trading prohibition of Section 16(b) and failed to comply with those provisions. The complaint seeks to recover from the lead underwriters any "short-swing profits" obtained by them in violation of Section 16(b). Akamai was named as a nominal defendant in the action but has no liability for the asserted claims. None of the Company's directors or officers serving in such capacities at the time of its initial public offering are currently named as defendants in this action, but there can be no guarantee that the complaint will not be amended or a new complaint or suit filed to name such directors or officers as defendants in this action or another action alleging a violation of the same provisions of the Securities Exchange Act of 1934, as amended. On March 12, 2009, the Court granted a joint motion by the Company and other issuer defendants to dismiss the complaint without prejudice on the grounds that the plaintiff had failed to make an adequate demand on the Company prior to fili ng her complaint. In its order, the Court stated it would not permit the plaintiff to amend her demand letters while pursuing her claims in the litigation. Because the Court dismissed the case on the grounds that it lacked subject matter jurisdiction, it did not specifically reach the issue of whether the plaintiff's claims were barred by the applicable statute of limitations. However, the Court also granted a Joint Motion to Dismiss by the underwriter defendants in the action with respect to cases involving non-moving issuers, holding that the cases were barred by the applicable statute of limitations because the issuers' shareholders had notice of the potential claims more than five years prior to filing suit. The plaintiff filed a Notice of Appeal on April 10, 2009. The Company does not expect the results of this action to have a material adverse effect on its business, results of operations or financial condition. The Company has recorded no liability for this matter as of June 30, 2010 . The Company is party to various other litigation matters that management considers routine and incidental to its business. Management does not expect the results of any of these routine actions to have a material adverse effect on the Company's business, results of operations or financial condition. Guarantees The Company has identified guarantees in accordance with the authoritative guidance for guarantor's accounting and disclosure requirements for guarantees, including indirect guarantees of indebtedness of others—which is an interpretation of previous accounting statements and rescission of previous guidance. This guidance elaborates on the existing disclosure requirements for most guarantees, including loan guarantees such as standby letters of credit. The guidance also clarifies that at the time an entity issues a guarantee, that entity must recognize an initial liability for the fair value, or market value, of the obligation it assumes under the guarantee and must disclose that information in its interim and annual financial statements. The Company evaluates losses for guarantees under the statement for accounting for contingencies, as interpreted by the gui dance for guarantor's accounting and disclosure requirements for guarantees, including direct guarantees of indebtedness of others. The Company considers such factors as the degree of probability that the Company would be required to satisfy the liability associated with the guarantee and the ability to make a reasonable estimate of the amount of loss. To date, the Company has not encountered material costs as a result of such obligations and has not accrued any liabilities related to such obligations in its financial statements. The fair value of the Company's outstanding guarantees as of June 30, 2010 was determined to be immaterial. </div>

0.01

700000000

174575502

186326126

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1746000

1863000

<div> 9. Comprehensive Income The following table presents the calculation of comprehensive income and its components (in thousands):   <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="68%"> </td> <td valign="bottom" width="3%"> </td> <td> </td> <td> </td> <td> </td> <td valign="bottom" width="3%"> </td> <td> </td> <td> </td> <td> </td> <td valign="bottom" width="3%"> </td> <td> </td> <td> </td> <td> </td> <td valign="bottom" width="3%"> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="6" align="center">For the Three Months Ended June 30,</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="6" align="center">For the Six Months Ended June 30,</td> <td valign="bottom"> </td></tr> <tr><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">2010</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">2009</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">2010</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">2009</td> <td valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Net income</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">38,123</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">36,007</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">79,001</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">73,088</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td></tr> <tr><td valign="top"> Other comprehensive income (loss):</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Foreign currency translation adjustments</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(3,094</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,527</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(4,880</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,064</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr><td valign="top"> Change in unrealized gain (loss) on investments, net</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,980</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">5,552</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,989</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">17,608</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Income tax (expense) benefit related to unrealized gain (loss) on investments, net</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(1,542</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(2,151</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(1,545</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(6,822</td> <td valign="bottom" nowrap="nowrap">) </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td></tr> <tr><td valign="top"> Other comprehensive (loss) income</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(656</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">6,928</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(2,436</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">11,850</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Comprehensive income</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">37,467</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">42,935</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">76,565</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">84,938</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td></tr></table> Accumulated other comprehensive income (loss) consisted of (in thousands):   <table border="0" cellspacing="0" cellpadding="0" width="92%"> <tr><td width="75%"> </td> <td valign="bottom" width="7%"> </td> <td> </td> <td> </td> <td> </td> <td valign="bottom" width="6%"> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">June 30, 2010</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">December 31, 2009</td> <td valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Foreign currency translation adjustment</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(3,949</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">931</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr><td valign="top"> Net unrealized loss on investments, net of tax of $5,800 at June 30, 2010 and $7,345 at December 31, 2009</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(9,169</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(11,613</td> <td valign="bottom" nowrap="nowrap">) </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Total accumulated other comprehensive income (loss)</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(13,118</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(10,682</td> <td valign="bottom" nowrap="nowrap">) </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td></tr></table> </div>

<div> 11. Concentration of Credit Risk Financial instruments that subject the Company to credit risk consist of cash and cash equivalents, marketable securities and accounts receivable. The Company maintains the majority of its cash, cash equivalents and marketable securities balances principally with domestic financial institutions that the Company believes are of high credit standing. At June 30, 2010 and December 31, 2009, the Company held ARS, with an estimated fair value of $177.7 million and $244.5 million, respectively, that have experienced failed auctions, preventing the Company from liquidating those investments. Based on its ability to access its cash and short-term investments and its expected cash flows, the Company does not anticipate the current lack of liquidity with respect to these ARS to have a material impact on its financial condition or results of operations during 2010. As of June 30, 2010, the Company had recorded a pre-tax cumulative unrealized loss of $15.3 million related to the temporary impairment of the ARS, which was included in accumulated other comprehensive loss on its consolidated balance sheet. See Note 4. Concentrations of credit risk with respect to accounts receivable are limited to certain customers to which the Company makes substantial sales. The Company's customer base consists of a large number of geographically dispersed customers diversified across numerous industries. To reduce risk, the Company routinely assesses the financial strength of its customers. Based on such assessments, the Company believes that its accounts receivable credit risk exposure is limited. One customer accounted for 11% of accounts receivable as of June 30, 2010. No customers accounted for 10% or more of accounts receivable as of December 31, 2009. The Company believes that, at June 30, 2010, concentration of credit risk related to accounts receivable is not significant. </div> 199755000

63562000

700000

120371000

60009000

139314000

71840000

304455000

150206000

362458000

188479000

43167000

44611000

34184000

31696000

2677000

2988000

8514000

35945000

127154000

53431000

58356000

67634000

0.43

0.21

0.46

0.22

0.39

0.19

0.42

0.2

<div> 7. Net Income per Share Basic net income per share is computed using the weighted average number of common shares outstanding during the applicable period. Diluted net income per share is computed using the weighted average number of common shares outstanding during the period, plus the dilutive effect of potential common stock. Potential common stock consists of shares issuable pursuant to stock options, deferred stock units, restricted stock units ("RSUs") and convertible notes.   The following table sets forth the components used in the computation of basic and diluted net income per common share (in thousands, except per share data):   <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="64%"> </td> <td valign="bottom" width="4%"> </td> <td> </td> <td> </td> <td valign="bottom" width="4%"> </td> <td> </td> <td> </td> <td valign="bottom" width="4%"> </td> <td> </td> <td> </td> <td valign="bottom" width="4%"> </td> <td> </td> <td> </td></tr> <tr><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="5" align="center">For the Three Months Ended June 30,</td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="5" align="center">For the Six Months Ended June 30,</td></tr> <tr><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">2010</td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">2009</td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">2010</td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">2009</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Numerator:</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td></tr> <tr><td valign="top"> Net income</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">38,123</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">36,007</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">79,001</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">73,088</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Add back of interest expense on 1% convertible senior notes (net of tax)</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">396</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">440</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">818</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">866</td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td></tr> <tr><td valign="top"> Numerator for diluted net income per common share</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">38,519</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">36,447</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">79,819</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">73,954</td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Denominator:</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td></tr> <tr><td valign="top"> Denominator for basic net income per common share</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">173,317</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">172,561</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">172,209</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">171,540</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Effect of dilutive securities:</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td></tr> <tr><td valign="top"> Stock options</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,992</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,129</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,717</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,791</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Effect of escrow contingencies</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">339</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">347</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">339</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">347</td></tr> <tr><td valign="top"> RSUs and deferred stock units</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,396</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">583</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,299</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,256</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Assumed conversion of 1% convertible senior notes</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">11,435</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">12,936</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">12,182</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">12,936</td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td></tr> <tr><td valign="top"> Denominator for diluted net income per common share</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">190,479</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">189,556</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">189,746</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">188,870</td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Basic net income per common share</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.22</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.21</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.46</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.43</td></tr> <tr><td valign="top"> Diluted net income per common share</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.20</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.19</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.42</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">0.39</td></tr></table> Outstanding options to acquire an aggregate of 1.1 million and 3.0 million shares of common stock for the three months ended June 30, 2010 and 2009, respectively, were excluded from the calculation of diluted earnings per share because the exercise prices of these stock options were greater than the average market price of the Company's common stock during the respective periods. Similarly, outstanding options to acquire an aggregate of 1.6 million and 3.2 million shares of common stock for the six months ended June 30, 2010 and 2009, respectively, were excluded from the calculation of diluted earnings per share because the exercise prices of these stock options were greater than the average market price of the Company's common stock during the respective periods. Additionally, 3.2 million and 3.3&nbsp ;million shares of common stock issuable in respect of outstanding performance-based RSUs were excluded from the computation of diluted net income per share for the three and six months ended June 30, 2010, respectively, and 3.3 million and 2.6 million shares of common stock issuable in respect of outstanding performance-based RSUs were excluded from the computation of diluted net income per share for the three and six months ended June 30, 2009, respectively, because the performance conditions had not been met as of those dates. The calculation of assumed proceeds used to determine the diluted weighted average shares outstanding under the treasury stock method in the periods presented was adjusted by tax windfalls and shortfalls associated with all of the Company's outstanding stock awards. Such windfalls and shortfalls are computed by comparing the tax deductible amount of outstanding stock awards to their grant date fair values and multiplying the results by the applicable statutory tax rate. A positive result creates a windfall, which increases the assumed proceeds, and a negative result creates a shortfall, which reduces the assumed proceeds. </div>

418000

-2519000

658000

12923000

658000

12923000

560000

105000

248000

127000

1062000

71212000

35144000

83257000

43707000

441347000

452950000

<div> 10. Goodwill and Other Intangible Assets The Company recorded goodwill and other intangible assets as a result of business acquisitions that occurred from 2000 through 2010. During the three months ended June 30, 2010, the Company recorded $11.6 million and $2.8 million of goodwill and other intangible assets, respectively, in connection with the acquisition of the assets and liabilities of Velocitude. The Company also acquired license rights from the Massachusetts Institute of Technology in 1999. Other intangible assets that are subject to amortization consist of the following (in thousands):   <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="70%"> </td> <td valign="bottom" width="4%"> </td> <td> </td> <td> </td> <td valign="bottom" width="4%"> </td> <td> </td> <td> </td> <td> </td> <td valign="bottom" width="4%"> </td> <td> </td> <td> </td></tr> <tr><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="9" align="center">June 30, 2010</td></tr> <tr><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">Gross Carrying Amount</td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">Accumulated Amortization</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">Net Carrying Amount</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Completed technology</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">36,731</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(13,528</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">23,203</td></tr> <tr><td valign="top"> Customer relationships</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">88,700</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(46,165</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">42,535</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Non-compete agreements</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">8,340</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(3,426</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">4,914</td></tr> <tr><td valign="top"> Trademarks and trade names</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">800</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(599</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">201</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Acquired license rights</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">490</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(490</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td></tr> <tr><td valign="top"> Total</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">135,061</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(64,208</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">70,853</td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td></tr> <tr><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="9" align="center">December 31, 2009</td></tr> <tr><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">Gross Carrying Amount</td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">Accumulated Amortization</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">Net Carrying Amount</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Completed technology</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">35,031</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(10,832</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">24,199</td></tr> <tr><td valign="top"> Customer relationships</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">88,700</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(41,312</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">47,388</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Non-compete agreements</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">7,200</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(2,809</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">4,391</td></tr> <tr><td valign="top"> Trademarks and trade names</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">800</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(505</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">295</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Acquired license rights</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">490</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(490</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td></tr> <tr><td valign="top"> Total</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">132,221</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(55,948</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">76,273</td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td></tr></table> Aggregate expense related to amortization of other intangible assets for each of the three months ended June 30, 2010 and 2009 was $4.2 million. For the six months ended June 30, 2010 and 2009, aggregate expense related to amortization of other intangible assets was $8.3 million and $8.5 million, respectively. Based on the Company's other intangible assets as of June 30, 2010, aggregate expense related to amortization of other intangible assets is expected to be $8.4 million for the remainder of 2010, and $16.9 million, $15.9 million, $13.1 million and $7.6 million for fiscal years 2011, 2012, 2013 and 2014, respectively. </div>

119770000

58032000

128075000

59438000

<div> 14. Income Taxes The Company's effective income tax rate, including discrete items, was 38.3% and 39.0% for the six months ended June 30, 2010 and 2009, respectively. The effective income tax rate is based upon the estimated income for the year, the estimated composition of the income in different jurisdictions and discrete adjustments, if any, in the applicable quarterly periods including settlements of tax audits or assessments, the resolution or identification of tax position uncertainties, and acquisitions of other companies. The discrete items also include the tax effect of disqualifying dispositions of incentive stock options and shares purchased under its Employee Stock Purchase Plan. For the six months ended June 30, 2010 and 2009, the effective income tax rates were higher than the federal statutory tax rate mainly due to the effects of accounting for stock-b ased compensation in accordance with the authoritative guidance for share-based payments, and state income tax expense. </div>

17773000

22130000

46682000

22025000

49074000

21315000

-21337000

11878000

-10660000

16406000

946000

-1319000

-4149000

-762000

4275000

40284000

76273000

70853000

1420000

710000

1327000

618000

999000

966000

8799000

4059000

6512000

3262000

<div> 4. Marketable Securities and Investments The Company accounts for financial assets and liabilities in accordance with a fair value measurement accounting standard. The accounting standard provides a framework for measuring fair value under GAAP and requires expanded disclosures regarding fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting standard also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs, other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques.   The following is a summary of marketable securities and other investment-related assets held at June 30, 2010 and December 31, 2009 (in thousands):   <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="38%"> </td> <td valign="bottom" width="2%"> </td> <td> </td> <td> </td> <td valign="bottom" width="2%"> </td> <td> </td> <td> </td> <td valign="bottom" width="2%"> </td> <td> </td> <td> </td> <td> </td> <td valign="bottom" width="2%"> </td> <td> </td> <td> </td> <td> </td> <td valign="bottom" width="2%"> </td> <td> </td> <td> </td> <td valign="bottom" width="2%"> </td> <td> </td> <td> </td> <td valign="bottom" width="2%"> </td> <td> </td> <td> </td></tr> <tr><td valign="bottom" rowspan="3" nowrap="nowrap"> As of June 30, 2010</td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" rowspan="3" colspan="2" align="center">Cost</td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" rowspan="2" colspan="5" align="center">Gross Unrealized</td> <td valign="bottom" rowspan="2"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" rowspan="3" colspan="2" align="center">Other-than- temporary Impairment Gains (Losses)</td> <td valign="bottom" rowspan="3"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" rowspan="3" colspan="2" align="center">Aggregate Fair Value</td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="5" align="center">Classified on Balance Sheet</td></tr> <tr><td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" rowspan="2" colspan="2" align="center">Short-term Marketable Securities</td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" rowspan="2" colspan="2" align="center">Long-term Marketable Securities</td></tr> <tr><td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">Gains</td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">Losses</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Available-for-sale securities:</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td></tr> <tr><td valign="top"> Certificates of deposit</td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">408</td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">—  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">408</td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">381</td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">27</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Commercial paper</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">41,394</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">7</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(77</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">41,324</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">41,324</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td></tr> <tr><td valign="top"> U.S. corporate debt securities</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">471,055</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">899</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(781</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">471,173</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">289,109</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">182,064</td></tr> <tr bgcolor="#cceeff"><td valign="top"> U.S. government agency obligations</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">297,406</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">354</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(29</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">297,731</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">22,393</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">275,338</td></tr> <tr><td valign="top"> Auction rate securities</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">166,000</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(15,342</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">150,658</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">150,658</td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">976,263</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,260</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(16,229</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">961,294</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">353,207</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">608,087</td></tr> <tr><td valign="top"> Trading securities:</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Auction rate securities</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">30,475</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(3,432</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">27,043</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">27,043</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td></tr> <tr><td valign="top"> Other investment-related assets:</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Put option related to auction rate securities</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,432</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,432</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,432</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td></tr> <tr><td valign="top"> </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,006,738</td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,260</td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(16,229</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">991,769</td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">383,682</td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">608,087</td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td></tr> <tr><td height="16"> </td> <td height="16" colspan="3"> </td> <td height="16" colspan="7"> </td> <td height="16" colspan="4"> </td> <td height="16" colspan="3"> </td> <td height="16" colspan="6"> </td></tr> <tr><td valign="bottom" rowspan="3" nowrap="nowrap"> As of December 31, 2009</td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" rowspan="3" colspan="2" align="center">Cost</td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" rowspan="2" colspan="5" align="center">Gross Unrealized</td> <td valign="bottom" rowspan="2"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" rowspan="3" colspan="2" align="center">Other-than- temporary Impairment Gains (Losses)</td> <td valign="bottom" rowspan="3"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" rowspan="3" colspan="2" align="center">Aggregate Fair Value</td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="5" align="center">Classified on Balance Sheet</td></tr> <tr><td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" rowspan="2" colspan="2" align="center">Short-term Marketable Securities</td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" rowspan="2" colspan="2" align="center">Long-term Marketable Securities</td></tr> <tr><td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">Gains</td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">Losses</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Available-for-sale securities:</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td></tr> <tr><td valign="top"> Certificates of deposit</td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">417</td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">—  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">417</td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">381</td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">36</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Commercial paper</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">60,976</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">6</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(15</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">60,967</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">60,967</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td></tr> <tr><td valign="top"> U.S. corporate debt securities</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">334,464</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,319</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(395</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">336,388</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">179,978</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">156,410</td></tr> <tr bgcolor="#cceeff"><td valign="top"> U.S. government agency obligations</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">228,376</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">303</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(391</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">228,288</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">67,910</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">160,378</td></tr> <tr><td valign="top"> Auction rate securities</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">198,700</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(20,781</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">177,919</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">177,919</td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">822,933</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,628</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(21,582</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">803,979</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">309,236</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">494,743</td></tr> <tr><td valign="top"> Trading securities:</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Auction rate securities</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">76,200</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(9,614</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">66,586</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">66,586</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td></tr> <tr><td valign="top"> Other investment-related assets:</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Put option related to auction rate securities</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">9,614</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">9,614</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">9,614</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td></tr> <tr><td valign="top"> </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">899,133</td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,628</td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">(21,582</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">880,179</td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">385,436</td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">494,743</td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td></tr></table> Unrealized gains and unrealized temporary losses on investments classified as available-for-sale are included within accumulated other comprehensive income (loss). Upon realization, those amounts are reclassified from accumulated other comprehensive income (loss) to gain (loss) on investments, net in the statement of operations. All gains and losses on investments classified as trading securities are included within the income statement as gain (loss) on investments, net. Realized gains and losses and gains and losses on other-than-temporary impairments on investments are reflected in the income statement as gain (loss) on investments, net. As of June 30, 2010, the Company had recorded $196.5 million of auction rate securities at cost with gross unrealized losses and other-than-temporary impairment losses that have been in a continuous loss position for more than 12 months. The following table details the fair value measurements within the fair value hierarchy of the Company's financial assets, including investments and cash equivalents, at June 30, 2010 (in thousands):   <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="57%"> </td> <td valign="bottom" width="4%"> </td> <td> </td> <td> </td> <td valign="bottom" width="4%"> </td> <td> </td> <td> </td> <td valign="bottom" width="4%"> </td> <td> </td> <td> </td> <td valign="bottom" width="4%"> </td> <td> </td> <td> </td></tr> <tr><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" rowspan="2" colspan="2" align="center">Total Fair Value at June 30, 2010</td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="8" align="center">Fair Value Measurements at Reporting Date Using</td></tr> <tr><td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">    Level 1    </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">    Level 2    </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">    Level 3    </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Money market funds</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">59,562</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">59,562</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">—  </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">—  </td></tr> <tr><td valign="top"> Certificates of deposit</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">408</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">408</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Commercial paper</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">41,324</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">41,324</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td></tr> <tr><td valign="top"> U.S. corporate debt securities</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">471,173</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">471,173</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td></tr> <tr bgcolor="#cceeff"><td valign="top"> U.S. government agency obligations</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">297,731</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">297,731</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td></tr> <tr><td valign="top"> Auction rate securities</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">177,701</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">177,701</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Put option related to auction rate securities</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,432</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,432</td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td></tr> <tr><td valign="top"> </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,051,331</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">59,970</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">810,228</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">181,133</td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td></tr></table> The following table reflects the activity for the Company's major classes of assets measured at fair value using Level 3 inputs for the six months ended June 30, 2010 (in thousands):   <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="69%"> </td> <td valign="bottom" width="5%"> </td> <td> </td> <td> </td> <td> </td> <td valign="bottom" width="5%"> </td> <td> </td> <td> </td> <td> </td> <td valign="bottom" width="5%"> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">Auction Rate Securities</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">Put Option Related to Auction Rate Securities</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">Total</td> <td valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Balance as of December 31, 2009</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">244,505</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">9,614</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">254,119</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr><td valign="top"> Sales of securities</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(78,425</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(78,425</td> <td valign="bottom" nowrap="nowrap">) </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Unrealized gain included in accumulated other comprehensive income (loss), net</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">5,439</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">5,439</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr><td valign="top"> Unrealized gain on auction rate securities included in the statement of operations</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">6,182</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">6,182</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Unrealized loss on other investment-related assets included in the statement of operations</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(6,182</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(6,182</td> <td valign="bottom" nowrap="nowrap">) </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td></tr> <tr><td valign="top"> Balance as of June 30, 2010</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">177,701</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">3,432</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">181,133</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td></tr></table> As of June 30, 2010, the Company had grouped money market funds and certificates of deposit using a Level 1 valuation because market prices for such investments are readily available in active markets. As of June 30, 2010, the Company had grouped commercial paper, U.S. government agency obligations and U.S. corporate debt securities using a Level 2 valuation because quoted prices for identical or similar assets are available in markets that are not active. As of June 30, 2010, the fair value of the Company's assets grouped using a Level 3 valuation consisted of auction rate securities ("ARS") as well as a related put option described below. In January 2010, the FASB issued authoritative guidance related to disclosures of fair value measurements. The guidance requires the gross presentation of activity within the Level 3 fair value measurement roll-forward and details of transfers in and out of Level 1 and 2 fair value measurements. It also clarifies two existing disclosure requirements on the level of disaggregation of fair value measurements and disclosures on inputs and valuation techniques. The Company adopted all of this guidance in the first quarter of 2010.   A change in the hierarchy of an investment from its current level will be reflected in the period during which the pricing methodology of such investment changed. Disclosure of the transfer of securities from Level 1 to Level 2 or Level 3 will be made in the event that the related security is significant to total cash and investments. The Company did not have any transfers of assets and liabilities between Level 1 and Level 2 of the fair value measurement hierarchy during the three or six months ended June 30, 2010. The Company's commercial paper, U.S. government agency obligations and U.S. corporate debt securities are classified as Level 2 securities. The Company primarily relies on valuation pricing models, recent bid prices and broker quotes to determine the fair value of these securities. The valuation models for Level 2 assets are developed and maintained by third party pricing services and use a number of standard inputs to the valuation model including benchmark yields, reported trades, broker/dealer quotes where the party is standing ready and able to transact, issuer spreads, benchmark securities, bids, offers and other reference data. The valuation model may prioritize these inputs differently at each balance sheet date for any given security, based on market conditions. Not all of the standard inputs listed will be used each time in the valuation models. For each asse t class, quantifiable inputs related to perceived market movements and sector news may be considered in addition to the standard inputs. Historically, the carrying value (par value) of the Company's ARS holdings approximated fair market value due to the resetting of variable interest rates in a "Dutch auction" process. Beginning in mid-February 2008 and continuing throughout the period ended June 30, 2010, however, the auctions for ARS then held by the Company failed. As a result, the interest rates on ARS reset to the maximum rate per the applicable investment offering statements. The Company will not be able to liquidate affected ARS until a future auction on these investments is successful, a buyer is found outside the auction process, the securities are called or refinanced by the issuer, or the securities mature. Due to these liquidity issues, the Company used a discounted cash flow analysis to determine the estimated fair value of these investments. The discounted cash flow analysis cons idered the timing of expected future successful auctions, the impact of extended periods of maximum interest rates, collateralization of underlying security investments and the creditworthiness of the issuer. The discounted cash flow analysis as of June 30, 2010 assumed a weighted average discount rate of 3.53% and expected term of five years. The discount rate was determined using a proxy based upon the current market rates for similar debt offerings. The expected term was based on management's estimate of future liquidity. As a result, as of June 30, 2010, the Company has estimated an aggregate loss of $18.8 million, of which $15.3 million was related to the impairment of ARS deemed to be temporary and included in accumulated other comprehensive income (loss) within stockholders' equity, and of which $3.4 million was related to the impairment of ARS deemed other-than-temporary and included in gain (loss) on investments, net in the consolidated statements of operations on a cumulative basi s. The discounted cash flow analysis performed as of December 31, 2009 for ARS assumed a weighted average discount rate of 3.98% and expected term of five years. As a result, as of that date, the Company estimated an aggregate loss of $30.4 million, of which $20.8 million was related to the impairment of ARS deemed to be temporary and included in accumulated other comprehensive income (loss) within stockholders' equity, and of which $9.6 million was related to the impairment of ARS deemed other-than-temporary and included in gain (loss) on investments, net in the consolidated statements of operations on a cumulative basis. The ARS the Company holds are primarily AAA-rated bonds, most of which are collateralized by federally guaranteed student loans as part of the Federal Family Education Loan Program through the U.S. Department of Education. The Company believes the quality of the collateral underlying these securities will enable it to recover the Company's principal balance. Despite the failed auctions, the Company continues to receive cash flows in the form of specified interest payments from the issuers of ARS. In addition, except as described below for ARS related to the put option, the Company believes it is more likely than not that it will not be required to sell the ARS prior to a recovery of par value and currently intends to hold the investments until such time because it believes it has sufficient cash and other marketable securities on-hand and from projected cash flows from operations.   In November 2008, the Company entered into an agreement with one of its investment advisors, which requires the advisor to repurchase the $30.5 million in par value of ARS purchased through such advisor at par value beginning on June 30, 2010. Such agreement created a separate financial instrument between the two companies (the "put option"). At any time during the period up until June 2010, the investment advisor had the right to call the ARS at par value but did not do so. These ARS were classified as trading securities as of June 30, 2010 and December 31, 2009. In early July 2010, the Company exercised the put option, and the $30.5 million of ARS were repurchased by the investment advisor at par value. See Note 16. The Company elected to apply the fair value option, permissible under the accounting standard for the fair value option for financial assets and liabilities, to the put option. As of June 30, 2010, the fair value of the put option had been reduced to $3.4 million as compared to $9.6 million as of December 31, 2009. As a result, the Company recorded a loss of $6.2 million, included in gain (loss) on investments, net in the consolidated statement of operations for the six months ended June 30, 2010. As of June 30, 2010, the $3.4 million fair value of the put option was grouped with short-term marketable securities on the Company's consolidated balance sheet. The fair value of the put option was determined by comparing the fair value of the related ARS, as described above, to their par values and also considers the credit risk associated with the investment advisor. The fair value of the put option is based on unobservable inputs and is therefore classified as Level 3 in the hierarchy. As of June 30, 2010 and December 31, 2009, the Company classified $150.7 million and $177.9 million, respectively, of ARS as long-term marketable securities on its consolidated balance sheet due to management's estimate of its inability to liquidate these investments within the following twelve months. As of June 30, 2010 and December 31, 2009, the Company classified $27.0 million and $66.6 million, respectively, of ARS as short-term marketable securities on its consolidated balance sheet due to its ability and intent to exercise the put option that the Company has with its investment advisor shortly after June 30, 2010. Contractual maturities of the Company's marketable securities and other investment-related assets held at June 30, 2010 and December 31, 2009 were as follows (in thousands): & lt;/p>   <table border="0" cellspacing="0" cellpadding="0" width="92%"> <tr><td width="74%"> </td> <td valign="bottom" width="6%"> </td> <td> </td> <td> </td> <td valign="bottom" width="6%"> </td> <td> </td> <td> </td></tr> <tr><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">June 30, 2010</td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">December 31, 2009</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Available-for-sale securities:</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td></tr> <tr><td valign="top"> Due in 1 year or less</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">353,207</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">309,236</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Due after 1 year through 5 years</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">457,429</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">316,824</td></tr> <tr><td valign="top"> Due after 5 years</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">150,658</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">177,919</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Trading securities:</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td></tr> <tr><td valign="top"> Due after 5 years</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">27,043</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">66,586</td></tr> <tr bgcolor="#cceeff"><td valign="top"> Other investment-related assets:</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td></tr> <tr><td valign="top"> Due in 1 year or less</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,432</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">9,614</td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">991,769</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">880,179</td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td></tr></table> As of June 30, 2010, $0.6 million of the Company's marketable securities were classified as restricted. These securities primarily represent security for irrevocable letters of credit in favor of third-party beneficiaries, mostly related to facility leases. The letters of credit are collateralized by restricted marketable securities, of which $0.6 million are classified as short-term marketable securities and $27,000 are classified as long-term marketable securities on the consolidated balance sheets. The restrictions on these marketable securities lapse as the Company fulfills its obligations or such obligations expire under the terms of the letters of credit. These restrictions are expected to lapse at various times through August 2014. </div> 348788000

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<div> 1. Nature of Business and Basis of Presentation Akamai Technologies, Inc. ("Akamai" or the "Company") provides services for accelerating and improving the delivery of content and applications over the Internet. Akamai's globally distributed platform comprises thousands of servers in hundreds of networks in approximately 70 countries. The Company was incorporated in Delaware in 1998 and is headquartered in Cambridge, Massachusetts. Akamai currently operates in one industry segment: providing services for accelerating and improving delivery of content and applications over the Internet. The accompanying interim consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. These financial statements include the accounts of Akamai and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in the accompanying financial statements. Certain information and footnote disclosures normally included in the Company's annual audited consolidated financial statements and accompanying notes have been condensed or omitted in these interim financial statements. Accordingly, the unaudited consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and accompanying notes included in Akamai's annual report on Form 10-K for the year ended December 31, 2009, filed with the Securities and Exchange Commission on March 1, 2010. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results of operations that may be expected for any future periods. In the opinion of management, these unaudited consolidated financial statements include all adjustments and accruals, consisting only of normal recurring adjustments, that are necessary for a fair statement of the results of all interim periods reported herein. </div>

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<div> 5. Accounts Receivable Net accounts receivable consisted of the following (in thousands):   <table border="0" cellspacing="0" cellpadding="0" width="92%"> <tr><td width="75%"> </td> <td valign="bottom" width="6%"> </td> <td> </td> <td> </td> <td> </td> <td valign="bottom" width="5%"> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">June 30, 2010</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">December 31, 2009</td> <td valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Trade accounts receivable</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">127,314</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">117,449</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr><td valign="top"> Unbilled accounts</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">48,160</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">47,399</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Gross accounts receivable</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">175,474</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">164,848</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td></tr> <tr><td valign="top"> Allowance for doubtful accounts</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(2,075</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(4,137</td> <td valign="bottom" nowrap="nowrap">) </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Reserve for cash-basis customers</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(8,825</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(6,442</td> <td valign="bottom" nowrap="nowrap">) </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td></tr> <tr><td valign="top"> Total accounts receivable reserves</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(10,900</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(10,579</td> <td valign="bottom" nowrap="nowrap">) </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Accounts receivable, net</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">164,574</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">154,269</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td></tr></table> The Company's accounts receivable balance includes unbilled amounts that represent revenues recorded for customers that are typically billed monthly in arrears. The Company records reserves against its accounts receivable balance. These reserves consist of allowances for doubtful accounts and reserves for cash-basis customers. Increases and decreases in the allowance for doubtful accounts are included as a component of general and administrative expenses. The Company's reserve for cash-basis customers increases as services are provided to customers where collection is no longer assured. Increases to the reserve for cash-basis customers are recorded as reductions of revenues. The reserve decreases and revenue is recognized when and if cash payments are received. Estimates are used in determining these reserves and are based upon the Company's review of outstanding balances on a customer-specific, account-by-account basis. The allowance for doubtful accounts is based upon a review of customer receivables from prior sales with collection issues where the Company no longer believes that the customer has the ability to pay for services previously provided. The Company also performs ongoing credit evaluations of its customers. If such an evaluation indicates that payment is no longer reasonably assured for services provided, any future services provided to that customer will result in the creation of a cash-basis reserve until the Company receives consistent payments. The Company does not have any off-balance sheet credit exposure related to its customers. </div> <div> 2. Recent Accounting Pronouncements In September 2009, the Emerging Issues Task Force of the Financial Accounting Standards Board ("FASB") issued authoritative guidance on revenue arrangements with multiple deliverables. This guidance provides an alternative method for establishing the selling price for a deliverable. When vendor-specific objective evidence ("VSOE") or third-party evidence ("TPE") for deliverables in an arrangement cannot be determined, companies will be required to develop an estimate of the selling price for separate deliverables and allocate arrangement consideration using the relative selling price method. The Company has elected to early adopt this accounting guidance at the beginning of its first quarter of fiscal 2010 on a prospective basis for all new or materially modified arrangements entered into on or after January 1, 2010. For most arrangements, the Company has been able to determine the selling price for each element in its multiple element arrangements based on VSOE for each respective element. Specifically, the selling price is determined based upon the price charged when the element is sold separately or based on the renewal rate for services contractually offered to the customer. For arrangements in which the Company is unable to establish VSOE or TPE for each element, the Company uses the best estimate of selling price. As a result, the adoption of this guidance did not have a material impact on the Company's consolidated financial statements. In terms of the timing and pattern of revenue recognition, the new accounting guidance for revenue recognition is not expected to have a significant effect on revenues in periods after the initial adoption when applied to multiple element arrangements based on current go-to-market strategies due to the existence of VSOE across the Company's service offerings. In October 2009, the FASB issued an accounting standard for certain revenue arrangements that include software elements. This standard amends previously issued guidance to exclude tangible products containing software components and non software components that function together to deliver the product's essential functionality. Entities that sell joint hardware and software products that meet the exception will be required to follow the guidance for multiple deliverable revenue arrangements. This standard is effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. Early adoption and retrospective application are also permitted. The Company has elected to early adopt this guidance beginning January 1, 2010. As a result, the adoption of this guidance did not have a materia l impact on the Company's consolidated financial statements. </div>

<div> 16. Subsequent Events In early July 2010, the Company exercised its right to require one of its investment advisors to repurchase $30.5 million of ARS at par value. On July 22, 2010, the Board of Directors of the Company elected David Kenny as President, effective September 7, 2010. Paul Sagan will remain with the Company as its Chief Executive Officer. </div>

<div> 13. Segment and Geographic Information Akamai's chief decision-maker, as defined under the authoritative guidance that discusses disclosures about segments of an enterprise and related information, is the Chief Executive Officer and the executive management team. As of June 30, 2010, Akamai operated in one industry segment: providing services for accelerating and improving the delivery of content and applications over the Internet. The Company is not organized by market and is managed and operated as one business. A single management team that reports to the Chief Executive Officer comprehensively manages the entire business. The Company does not operate any material separate lines of business or separate business entities with respect to its services. Accordingly, the Company does not accumulate discrete financial information with respect to separate product lines and does not have separately repo rtable segments as defined in the guidance. The Company deploys its servers into networks worldwide. As of June 30, 2010, the Company had $163.7 million and $64.2 million of property and equipment, net of accumulated depreciation, located in the United States and in foreign locations, respectively. As of December 31, 2009, the Company had $139.8 million and $42.6 million of property and equipment, net of accumulated depreciation, located in the United States and in foreign locations, respectively. Akamai sells its services through a direct sales force and channel partners located both in the United States and certain foreign locations. For each of the three months ended June 30, 2010 and 2009, 28% of the Company's revenues were derived from operations located outside of the United States, including 18% derived from Europe during the three months ended June 30, 2010 and 17% de rived from Europe during the three months ended June 30, 2009. For each of the six months ended June 30, 2010 and 2009, 28% of the Company's revenues were derived from operations located outside of the United States, including 18% derived from Europe during the six months ended June 30, 2010 and 17% derived from Europe during the six months ended June 30, 2009. No single country outside the United States accounted for 10% or more of revenues during these periods. For each of the three and six months ended June 30, 2010 and 2009, no customer accounted for 10% or more of total revenues. </div>

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<div> 8. Stockholders' Equity Stock Repurchase Program On April 29, 2009, the Company announced that its Board of Directors had authorized a stock repurchase program permitting purchases of up to $100.0 million of the Company's common stock from time to time on the open market or in privately negotiated transactions. On April 28, 2010, the Company announced that its Board of Directors had authorized an extension of the stock repurchase program permitting purchases of an additional $150.0 million of the Company's common stock from time to time over the next 12 months on the open market or in privately negotiated transactions. The timing and amount of any shares repurchased will be determined by the Company's management based on its evaluation of market conditions and other factors. Subject to applicable securities laws, the Company may choose to suspend or discontinue the repurchase program at any time. &l t;/font> During the three and six months ended June 30, 2010, the Company repurchased 536,925 and 1,371,045 shares, respectively, of its common stock for $20.4 million and $42.3 million, respectively. During the three and six months ended June 30, 2009, the Company repurchased 713,200 shares of its common stock for $15.0 million. As of June 30, 2010, the Company had $141.4 million remaining available for future purchases of shares under the approved repurchase program. Additionally, as of June 30, 2010, the Company had prepaid approximately $0.5 million for purchases of its common stock with a settlement date in early July 2010. Stock-Based Compensation Expense The following table summarizes the components of total stock-based compensation expense included in the Company's consolidated statements of operations for the three and six months ended June 30, 2010 and 2009 (in thousands):   <table border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="65%"> </td> <td valign="bottom" width="4%"> </td> <td> </td> <td> </td> <td> </td> <td valign="bottom" width="4%"> </td> <td> </td> <td> </td> <td> </td> <td valign="bottom" width="4%"> </td> <td> </td> <td> </td> <td> </td> <td valign="bottom" width="4%"> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="6" align="center">For the Three Months Ended June 30,</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="6" align="center">For the Six Months Ended June 30,</td> <td valign="bottom"> </td></tr> <tr><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">2010</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">2009</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">2010</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: rgb(0,0,0) 1px solid;" valign="bottom" colspan="2" align="center">2009</td> <td valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Stock-based compensation expense by type of award:</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td></tr> <tr><td valign="top"> Stock options</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">3,628</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">4,429</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">7,397</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">9,277</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Deferred stock units</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,885</td> <td valign="bottom" nowrap="nowrap"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,085</td> <td valign="bottom" nowrap="nowrap"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,885</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,085</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr><td valign="top"> RSUs</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">15,909</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">7,187</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">31,593</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">18,327</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Shares issued under the Employee Stock Purchase Plan</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,056</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">863</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,188</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,850</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr><td valign="top"> Amounts capitalized as internal-use software</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(2,202</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(1,244</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(3,679</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(3,152</td> <td valign="bottom" nowrap="nowrap">) </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Total stock-based compensation before income taxes</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">20,276</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">13,320</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">39,384</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">28,387</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr><td valign="top"> Less: Income tax benefit</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(7,271</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(5,055</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(14,999</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(11,072</td> <td valign="bottom" nowrap="nowrap">) </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Total stock-based compensation, net of taxes</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">13,005</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">8,265</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">24,385</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">17,315</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td></tr> <tr><td valign="top"> Effect of stock-based compensation on income by line item:</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Cost of revenues</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">707</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">489</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,408</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,050</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr><td valign="top"> Research and development expense</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,542</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,223</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">7,535</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">4,949</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Sales and marketing expense</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">8,776</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">6,024</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">17,800</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">13,064</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr><td valign="top"> General and administrative expense</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">7,251</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">4,584</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">12,641</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">9,324</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr bgcolor="#cceeff"><td valign="top"> Provision for income taxes</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(7,271</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(5,055</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(14,999</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(11,072</td> <td valign="bottom" nowrap="nowrap">) </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 1px solid;" valign="bottom"> </td> <td> </td></tr> <tr><td valign="top"> Total cost related to stock-based compensation, net of taxes</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">13,005</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">8,265</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">24,385</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">17,315</td> <td valign="bottom" nowrap="nowrap">  </td></tr> <tr style="font-size: 1px;"><td valign="bottom"> </td> <td valign="bottom">  </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td> <td valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td style="border-top: rgb(0,0,0) 3px double;" valign="bottom"> </td> <td> </td></tr></table> In addition to the amounts of stock-based compensation reported in the table above, the Company's consolidated statements of operations for the three and six months ended June 30, 2010 also included stock-based compensation reflected as a component of amortization of capitalized internal-use software; such additional stock-based compensation was $1.8 million and $3.7 million, respectively, before tax. The Company's consolidated statements of operations for the three and six months ended June 30, 2009 also included stock-based compensation reflected as a component of amortization of capitalized internal-use software; such additional stock-based compensation was $1.5 million and $2.8 million, respectively, before tax. </div>

3327146

4698191

66301000

108623000

188870000

189556000

189746000

190479000

171540000

172561000

172209000

173317000

294000